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One response to “10 Rules of Business Development in Tibet–by Pamela Logan”

I’m recently reading a Chinese book, How to get out of the poverty trap: case studies from the Tibetan Plateau in Provinces of Yunnan, Qinghai and Gansu 如何突破贫困陷阱——滇青甘农牧藏区案例研究, which is a collection of papers. The paper number two is titled the rational behavior of farmers and herdsmen in Tibetan area . Here is the abstract:

As the society and economy in Tibetan region of China has become increasingly market-oriented, farmers and herdsmen are breaking away from their traditions, shifting from tradition-oriented rational behavior to market-oriented rational behavior. They are taking full advantage of market opportunities by optimizing the allocation of labor, contracted land, and pasture in a variety of ways. Despite of their relatively low risk-taking ability, their “risk aversion” has not hindered their extensive effort to introduce new livestock breeds and technologies suitable to local conditions. Decisions of having children are made by farmers and herdsmen in a more economically rational manner, given their consideration such as the declining carrying capacity of per capita contracted cropland and grassland, the increase of living cost, and the intensified competition for outside employment opportunities. While religion remains an important part of their good living, local people have also rationally adjusted the time and money spent on religious activities. The relatively slow economic growth of the Tibetan region is not due to “outdated thinking” or irrational behavior of local farmers and herdsmen. Rather, we face a classical question of “social dilemma” here: rational individual behavior may lead to irrational collective outcome, and the solution to this question may be found in good institutional design.